-11122024742.png)
-11122024742.png)
Diminishing Great Britain retail sales
Diminishing Great Britain retail sales
As if the political storm hitting the UK was not enough, macroeconomic data is also not encouraging markets, adding pressure to the country's assets. GBPUSD is losing more than 1.4% since the start of the day on Friday, back below 1.1060, losing 2.4% from Thursday's peak on news of Liz Truss stepping down as prime minister.
Great Britain retail sales for September were down 1.4%, and down 1.5% excluding fuel, after falling 1.7% a month earlier. Sales were down 10% from their April 2021 peak and 10.7% ex-fuel, having lost for almost the whole of the last year and a half.
Falling consumer activity makes it harder for the Bank of England to find a balance sheet. Today's disappointing sales data is a strong case for the monetary dove camp. The weakness in the economy, as seen through the prism of falling sales and industrial production, can deter the Bank of England from raising its key rate more decisively, which is harmful to the Pound.
Should GBPUSD fall below 1.09 in the coming days, a retest of the 1.03-1.05 historic low area will be an issue, even though recently it seemed that the worst for the Pound is over.
By the FxPro Analyst Team
UK inflation has not inspired Pound buying
ATFX Market Outlook 19th February 2025
ATFX Market Outlook 18th February 2025
The pound's rally stalls as investors await fresh economic data
GBP/USD bears regain control
USDCAD, USDJPY, GBPUSD
GBPUSD Analysis: Unexpected committee attitude
